Connecticut will receive about $154 million in its first tranche of federal assistance to improve health care and access in rural parts of the state ahead of anticipated changes and cuts to Medicaid.
The federal aid comes from the Rural Health Transformation Program, a $50 billion fund that will dole out money to all states over the next five years. The initiative was part of President Donald Trump’s “One Big Beautiful Bill Act” amid concerns about how the bill’s Medicaid cuts would affect rural facilities.
Connecticut Department of Social Services Commissioner Andrea Barton Reeves said the award will enable the state “to keep working on long-standing priorities to improve health, prevent disease, and work to achieve our agency’s vision for a Connecticut where everyone is healthy, secure, and thriving.”
“This grant represents a tremendous opportunity to strengthen population health, health care access, workforce capacity, and system sustainability for residents in rural communities across our state,” Barton Reeves stated in emailed comments.
DSS is already hiring for three positions that will be responsible for implementing the Rural Health Transformation Program grant at the state level.
Over the next five years, half of the $50 billion grant will be evenly divided among all 50 states. The other $25 billion will be based on the sole discretion of the Centers for Medicare & Medicaid Services and will take into account the rural makeup of states plus other factors, such as potential for impact.
Connecticut will receive the second-lowest award of all 50 states, just ahead of New Jersey and the smallest award in New England. But it’s possible it will receive more in future yearly allotments.
Gov. Ned Lamont’s administration called it a “substantial award” that will help improve health care systems across rural parts of the state.
“Healthcare is a basic human right, and everyone, regardless of where they live, should have equal access to top quality services,” Lamont spokesman Rob Blanchard said in a statement, sent hours after this story was initially published. “By linking local priorities surrounding workforce developments, care coordination, and technology modernization with rural health outcomes, this funding will further our commitment to promoting the health and wellbeing of all Connecticut residents.”
Every state is slated to get at least $100 million a year through 2030. But stakeholders in Connecticut acknowledged it will be difficult to receive much from the second pot of money at CMS’s discretion, especially since Connecticut is less geographically rural compared to others states.
In a statement, CMS Administrator Mehmet Oz said “states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care and support the communities that keep our nation running. CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families.”
Officials at the Connecticut Department of Social Services and the Office of Policy and Management took the lead on the grant application and worked with several other state agencies. They received input from rural hospitals, federally qualified health centers and others in the health care field.
Following the passage of the “big beautiful bill” over the summer, the rural grant application process was a quick turnaround that opened up in the fall and wrapped up with the awards announcement by the end of the year.
In November, the Department of Social Services requested roughly $938 million from the federal government for the effort. But the state is unlikely to get anywhere near that amount over the next five years of the federal program.
Still, those who helped craft Connecticut’s application for federal assistance are optimistic about the award as well as “working with the state to maximize these funds.”
“Specifically, we are grateful that the state included many of our suggestions in its plan, such as incentives for the recruitment of providers, the development of a rural residency program and funding for technology infrastructure that will improve access to telehealth and remote patient monitoring,” according to a statement from Joanne Borduas, CEO of the Community Health and Wellness Center, which has health centers located in Torrington, North Canaan and Winsted.
“These are all critical to ensuring that our patients in the rural northwest corner of the state can continue to receive the high quality health care they need and deserve.”
Paul Kidwell, senior vice president of policy at the Connecticut Hospital Association, echoed Borduas.
“We believe there is an opportunity for the state to support the implementation of targeted initiatives that both directly invest in rural health care providers and the surrounding hospitals and health systems on which patients living in rural areas depend for care,” Kidwell stated in emailed comments.
Connecticut Senate Republicans similarly praised the news of the funding, saying it will “help bolster recruitment and retention of health care workers, and it will improve and strengthen opioid addiction services.”
Connecticut’s plan included 31 different initiatives focused on increasing care options in rural areas and facilitating access to that care. It included efforts aiming to reduce or eliminate travel times, like rolling out mobile medical and dental vans, as well as expanding telehealth options. There are also programs that seek to improve overall wellness: bringing evidence-based exercise classes to senior centers and making upgrades to existing trail systems.
A handful of the proposed initiatives would require sign-off from state lawmakers, including streamlining the state’s “certificate of need” approval process for major hospital transactions — such as mergers, acquisitions, and unit closures — and seeking a SNAP waiver to bar the purchase of energy drinks and candy.
The funding comes at an uncertain time for many clinics and hospitals as they brace for major health care shakeups in the coming years.
Cutbacks to Medicaid are imminent as a result of the “big beautiful bill.” Rural providers, who see many government-insured individuals, could suffer disproportionately as a result. And if some of those patients fall off the rolls, hospitals expect to treat more people who are uninsured.
Some of those changes to Medicaid could start as early as the end of 2026.
First-time work requirements for the health program could go into effect on Dec. 31. But states may also be eligible for delaying implementation. And by the end of the year, states will need to start redetermining eligibility for Medicaid every six months instead of once a year.
The Connecticut Mirror/Connecticut Public Radio federal policy reporter position is made possible, in part, by funding from the Robert and Margaret Patricelli Family Foundation.
This story was originally published by the Connecticut Mirror.
